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How Private Label Works On Amazon Selling?

December 27, 2017

For online sellers, private label has become an important way to kickstart their business. Once you own a label or brand, it projects an identity of its own that can boost your sales volume.

In the context of reselling on Amazon, private labeling a product implies that you collaborate along with a manufacturer and purchase a generic product. You may now own these products through adding your own logo or branding into it.

In other words, the manufacturer doesn’t have any right to the brand or label. He or she will take his/her share of profit through crafting the product.

How to private label your items

This includes several steps. It also needs lots of patience. Moreover, don’t expect an instant boost in terms of revenues if you are just starting. Here’s how to do this:

Look for an ideal product niche.

Prior to choosing what you can sell, there are some prerequisites which aid can decide you to select the right products that will thrive on Amazon. These prerequisites are known as product factors namely exclusivity, the ability to make recurring demand, non-perishable, falling in a specific range and lightweight and small.

These determining factors are significant to make sure that you land on products which are easy to shop, attract order and least possibilities of return.

Hunt for a manufacturer or supplier that makes your product

You may find a good supplier from China or US. However, it would be better if you’ll seek for local procurement options. Most of the logistic cost-related problems can be solved if you’ll consider the distance between your supplier and your warehouse.

Make differentiation through logo and product packaging

Once you’ve found the right supplier and product, you need to know your competitors. When done, analyze their packaging so you could see what they want to convey. Then, brainstorm how you can demonstrate and advertise your product better.

It is really important to get an attractive logo and design. This will make your private label stand out from the crowd.

Host the item on Amazon

Take note that the concept of private labeling is to make a stronger brand perception for the sake of your prospects. It’s the reason behind why you have to attend on the following required things set by Amazon.

More importantly, the private label provides you protection from being copied or stolen by means of Amazon Brand Registry. If you haven’t heard it before, it is actually an Amazon program which offers more control to the seller over their private labels or respective brands.

Utilize FBA

Usually, online shopping is comprised of two parts. The main part is the product while the other one is shipping. They significantly impact the overall experience. This is where FBA comes into play. Registering for FBA will let you utilize the supply chain set up of Amazon. With it, you don’t need to ship or pack the order. The FBA which you’ll pay already includes the shipping fee.

Aside from that, when enrolled in FBA, you are eligible automatically for prime shipping. It means every time you ship through prime, you may anticipate a boost in your private label sales.

Don’t be afraid creating your own brand and your own success story. Private label can be the right thing for you!